Related Stories

Motorola Solutions Inc, which makes walkie-talkies and rugged mobile computers, reported a slight rise in quarterly profit, helped by higher government sales, but forecast a steep drop in first-quarter sales.

The company's government business, which accounts for 70% of its revenue, fared well over the past year but its enterprise business has struggled as companies delay orders and cut down on spending.

Motorola Solutions forecast a 4-6% drop in current-quarter revenue. The forecast implies sales of $1.85 billion US to $1.89 billion, well short of analysts' average estimate of $2.02 billion.

The company said it expects earnings from continuing operations of 46-52 cents per share. Analysts on average were expecting earnings of 77 cents per share, according to Thomson Reuters.

Revenue in Motorola's government business rose 4% in the fourth quarter.

The business, which counts the U.S. government as its largest customer, provides land-mobile-radio systems, walkie-talkies and sells video surveillance systems.

Sales in Motorola's enterprise business rose to $736 million from $733 million, the second consecutive quarterly growth. Sales in the unit, which makes rugged mobile computers and tablets for businesses, jumped 2% in the third quarter, the first growth in seven quarters.

Net income rose to $343 million, or $1.31 per share, for the fourth-quarter ended Dec. 31, from $336 million, or $1.18 per share, a year earlier.

Excluding items, the company earned $1.67 per share from continuing operations.

Revenue rose to $2.50 billion from $2.44 billion.

Analysts on average had expected earnings of $1.62 per share on revenue of $2.49 billion, according to Thomson Reuters.

Motorola's shares have gained 11% since the company reported its third-quarter results in October, hitting their highest in six years on Tuesday after Citi upgraded the stock to "buy" from "neutral".